Aetna Inc. (NYSE: AET) Chief Executive Ronald Williams received $40.2 million in 2007 after the company's shares moved up more than 50% on the year before dropping again in 2008. The majority of the executive's compensation came from stock option grants, which he exercised during the past year to the tune of $32.8 million. Meanwhile, Mr. Williams is also eligible to receive an additiona $10.8 million in the future in the form of stock rights.

Ronald Williams is largely credited with turning around a troubled Aetna, but 2008 has erased much of his progress in 2007. The executive received a $1.096 million salary in 2007 with an annual bonus of $1.9 million and restricted stock valued at around $4.29 million. Mr. Williams "other compensation" totalled $104,162 for personal use of company aircraft and vehicles along with financial planning services and 401(k) contributions.

Shareholders saw improvements being made in 2007 with revenues increasing some 10% and operating earnings rising 20%. This is indicative of a turnaround in the form of increased operating efficiency and cost cutting measures. Investors may be a little bitter about the year so far in 2008, but the company insists that they need to pay executives to attract, motivate, and retain highly qualified individuals.

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